Bill Text: MI HB4093 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Gaming; lottery; sale of advertising on club keno lottery games; allow, and earmark revenues. Amends title & secs. 11 & 18 of 1972 PA 239 (MCL 432.11 & 432.18) & adds sec. 45.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2011-01-25 - Recommendation Concurred In [HB4093 Detail]
Download: Michigan-2011-HB4093-Introduced.html
HOUSE BILL No. 4093
January 18, 2011, Introduced by Reps. Horn, Wayne Schmidt, MacMaster and LaFontaine and referred to the Committee on Families, Children, and Seniors.
A bill to amend 1972 PA 239, entitled
"McCauley-Traxler-Law-Bowman-McNeely lottery act,"
by amending the title and sections 11 and 18 (MCL 432.11 and
432.18), the title as amended by 1996 PA 95 and sections 11 and 18
as amended by 2004 PA 383, and by adding section 45.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to establish and operate a state lottery and to allow
state participation in certain lottery-related joint enterprises
with other sovereignties; to create a bureau of state lottery and
to prescribe its powers and duties; to prescribe certain powers and
duties of other state departments and agencies; to license and
regulate
certain sales agents; to create the state lottery fund
funds; to provide for the distribution of lottery revenues and
earnings for certain purposes; to provide for an appropriation; and
to provide for remedies and penalties.
Sec. 11. (1) The commissioner shall promulgate rules pursuant
to the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, as necessary to implement this act.
(2) The rules authorized under this section may include any of
the following, subject to requirements and limitations in this act:
(a) The type of lottery to be conducted.
(b) The price of tickets or shares in the lottery.
(c) The number and size of the prizes on the winning tickets
or shares.
(d) The manner of selecting the winning tickets or shares.
(e) The manner of payment of prizes to the holders of winning
tickets or shares.
(f) The frequency of the drawings or selections of winning
tickets or shares.
(g) Without limit as to number, the type or types of locations
at which tickets or shares may be sold.
(h) The method to be used in selling tickets or shares, except
that a person's name, other than a name used in advertising or a
promotion under section 18(2) or (3), shall not be printed on the
tickets or shares.
(i) The licensing of agents to sell tickets or shares, but a
person under the age of 18 shall not be licensed as an agent.
(j) The manner and amount of compensation to be paid licensed
sales agents necessary to provide for the adequate availability of
tickets or shares to prospective buyers and for the convenience of
the public.
(k) The apportionment of the total annual revenues accruing
from the sale of lottery tickets or shares and from all other
sources for the payment of prizes to the holders of winning tickets
or shares, for the payment of costs incurred in the operation and
administration of the lottery, including the expenses of the bureau
and the costs resulting from any contract or contracts entered into
for promotional, advertising, consulting or operational services or
for the purchase or lease of lottery equipment and materials, for
the repayment of the money appropriated to the state lottery fund,
and for transfer to the general fund.
(3) The commissioner may promulgate rules incorporating by
reference existing rules or regulations of any joint enterprise as
required as a condition for participation in that joint enterprise.
Any subsequent changes or additions to the rules or regulations of
the joint enterprise may be adopted by the commissioner through the
promulgation of a rule.
Sec. 18. (1) The commissioner, subject to the applicable laws
relating to public contracts, may enter into contracts for the
operation of the lottery, or any part of the lottery, and into
contracts for the promotion of the lottery. A contract awarded or
entered into by the commissioner shall not be assigned by the other
contracting party except by specific approval of the commissioner.
(2) The commissioner may contract with 1 or more persons to
allow the placement of advertising or promotional material,
including, but not limited to, the placement of discount coupons
for retail goods and NASCAR logos, images, and drivers' pictures
and names, on lottery tickets, shares, and other available media
under the control of the bureau. However, except for advertising
that promotes responsible consumption of alcoholic beverages, the
commissioner shall not allow the placement of advertising for the
promotion of the consumption of alcoholic beverages or tobacco
products on lottery tickets under the control of the bureau under
this subsection.
(3) The commissioner may contract with 1 or more persons to
allow the placement of advertising or promotional material on
available media related to the bureau's club keno game or to
sponsor individual draws in the club keno game. If the commissioner
enters into a contract under this subsection, the commissioner
shall allow at least 1 minute between games of club keno during
which 1 or more advertisements may be exhibited.
(4) A contract entered into under subsection (3) shall provide
that any advertisements exhibited between club keno games shall
comply with content regulations for televised broadcasts adopted by
the federal communications commission, with the exception that the
advertising under subsection (3) may include advertisements for
alcoholic beverages subject only to any restrictions imposed by the
commissioner.
(5) The commissioner shall solicit bids from responsible
persons for advertising or promotional contracts under subsection
(3). The commissioner shall select from among the bids received so
as to produce the maximum amount of net revenues for this state
consonant with the general welfare of the citizens of this state.
In deciding whether to enter into a contract under subsection (3),
the commissioner shall consider whether the terms of the contract
are comparable to the terms of similar advertising or promotional
contracts relating to lottery or other gaming in other states.
(6) Money from an advertising contract under subsection (3)
shall be deposited in the club keno advertising fund created in
section 45.
(7) (3)
As used in this section,
"NASCAR" means the national
association for stock car auto racing, inc.
Sec. 45. (1) The club keno advertising fund is created within
the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the club keno advertising fund. The
state treasurer shall direct the investment of the club keno
advertising fund. The state treasurer shall credit to the club keno
advertising fund interest and earnings from fund investments.
(3) Money in the club keno advertising fund at the close of
the fiscal year shall remain in the club keno advertising fund and
shall not lapse to the general fund.
(4) The bureau shall be the administrator of the club keno
advertising fund for auditing purposes.
(5) Money in the club keno advertising fund shall be
distributed as follows:
(a) The first $400,000.00 deposited into the fund in each
state fiscal year or 2% of the money deposited into the fund in
each state fiscal year, whichever is less, shall be distributed to
the bureau for reimbursement of the bureau's costs related to
advertising conducted under section 18(3).
(b) The next $18,000,000.00 deposited into the fund in each
state fiscal year shall be disbursed to travel Michigan to fund the
pure Michigan campaign.
(c) The balance of the money deposited into the fund shall be
disbursed to the state school aid fund.
